RBI notifies Integrated Ombudsman Scheme, 2021.
The Scheme integrates the existing three Ombudsman schemes of RBI namely, The banking ombudsman scheme 2006, the ombudsman scheme for non-banking financial companies 2018 and the ombudsman scheme for digital transactions, 2019.
RBI announces the activation of RBI Retail Direct Scheme with effect from 12th November 2021.
Under this scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an online portal (https://rbiretaildirect.org.in). The investors must have a permanent account number (PAN) issued by the Income Tax Department, a rupee savings bank account maintained in India, documents for KYC and registered email and mobile number.
RBI issues master direction on the interest rate on deposits.
As per section 19(d) the Interest on floating rate deposits shall be paid within the ceiling of swap rates for the respective currency/ maturity and in case of fixed rate deposits, interest shall be paid within the ceiling of Overnight Alternative Reference Rate for the respective currency/ maturity.
RBI issues master circular on Guarantees and Co-acceptances.
Banks should not execute guarantees for enabling placement of funds with NBFCs or other non-banking entities directly or indirectly, including inter-company deposits/ loans. This stipulation will apply to all sources of funds raised by such entities, e.g. deposits/ loans received from trusts and other institutions.
RBI permits FPIs to invest in debt securities issued by InvITs and ReEITs.
The union budget 2021-2022 announced that debt financing of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) by Foreign Portfolio Investors (FPIs) will be permitted by amending the applicable legislation. Accordingly, it has been decided to permit FPIs to invest in debt securities issued by InvITs and REITs.
Report of RBI Committee on functioning of Asset Reconstruction Companies
Any acquisition of management/ trusteeship of a financial asset by an ARC from another ARC must have the approval of a majority, by value, of the SR holders concerned or such other prescribed threshold as may be defined by the subscription agreement / trust deed.
RBI revises the Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks (SCBs).
The PCA Framework would apply to all banks operating in India including foreign banks operating through branches or subsidiaries based on breach of risk thresholds of identified indicators.
RBI issues master circular on Guarantees, co-acceptances and letter of credit for Urban co-operative banks.
UCB shall confine their guarantees to relatively short-term maturities. Guarantees should not be issued for periods exceeding ten years in any case. The total volume of guarantee obligations outstanding at any time may not exceed 10 per cent of the total owned resources of the bank comprising paid up capital, reserves and deposits.
RBI introduces prudential norms for income recognition, asset classification and provisioning for the advances portfolio of the banks.
Banks must fix a Date of Commencement of Commercial Operations (DCCO) for all project loans at the time of sanction of the loan / financial closure.
RBI allows banks to open current accounts for borrowers availing credit facilities from other banks.
RBI has also permitted banks to open/maintain the following accounts, without any restrictions in the case of inter-bank accounts, accounts of All India Financial Institutions, accounts opened under specific instructions of Central Government and State Governments, etc.
